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Bailey McCann, Opalesque New York:

Family offices are taking a closer look at private equity and playing a bigger role in the M&A universe, according to a recent report from Morgan Stanley.

Family offices are participating both in traditional commingled funds as well as making co-investments and direct investments on a selective basis.

According to the report, family offices tend to be in one of two groups when it comes to private equity investments - established and emerging. Established family offices typically have clear investment guidelines and may have deep internal teams that assess potential deals or even originate them.

Emerging family offices tend to be a big more ad hoc in their approach. These family offices may have started by building relationships with a select group of external managers and are now expanding how they approach private equity as an asset class. To be most effective, the report suggests that families set clear goals around what they expect to get out of private equity investments and how they want to achieve their goals. In this way, families can establish good governance early on, the report says. Advancements in data tools and artificial intelligence can also help families gain greater visibility into private equity by offering more and better data and insights.

The report also notes that next gen family office members are already showing an interest in private equity and that work on this asset class might be a way for fa......................

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